For breaking regulations, RBI fined ICICI Bank and Yes Bank Rs. 1 crore and Rs. 91 lakh, respectively.
By applying fees to bank accounts where the balance had dropped to zero, Yes Bank violated RBI regulations. Additionally, it had created and run internal accounts in the names of its clients for unauthorized uses such as transaction routing and fund parking.
According to RBI regulations, clients may only be billed for banking services if there is money in their accounts. The bank is obliged to stop providing services if an account balance hits zero. According to the 2014 recommendations, banks have to make sure that the costs for not maintaining the minimum amount do not cause the savings account balance to become negative.
ICICI Bank is being penalized for errors in project loan approval. During RBI's supervisory examination for FY22, a required inspection of both banks' books revealed the irregularities.
The RBI discovered that ICICI Bank approved term loans to organizations in order to substitute budgetary resources for certain projects. Without doing a thorough analysis of the projects' feasibility and bankability, the bank had sanctioned the loans. Additionally, it permitted servicing or repaying debts made out of budgetary funds. Without verifying that the loans were intended for particular, trackable projects, they were authorized.
